Anthony is going to invest in an account paying an interest rate of 2.7% compounded quarterly. How much would Anthony need to invest, to the nearest hundred dollars, for the value of the account to reach $130 in 10 years?

$99

Step-by-step explanation:

Given that :

Rate (r) = 2.7% = 0.027 Compounded quarterly

Final amount (A) = $130

Period (t) = 10 years

Principal = invested amount (p) =?

n = number of compounding tines per period = 12/3 = 4

Using the formula :

A = p(1 + r/n)^nt

130 = p(1 + 0.027/4)^(4*10)

130 = p(1 + 0.00675)^40

130 = p(1.00675)^40

130 = p(1.3087766)

P = 130 / 1.3087766

P = 99.329402

P = $99

Answer step by step

Step-by-step explanation: